Is Darjeeling Ropew overvalued or undervalued?

As of 10 October 2025, the valuation grade for Darjeeling Ropew has moved from risky to very expensive. This indicates a significant shift in the company's perceived value, suggesting that it is currently overvalued. The company exhibits a PE ratio of 72.86, a Price to Book Value of 15.26, and a ROCE of 6.53%, all of which are considerably high compared to industry norms.
In comparison to its peers, Darjeeling Ropew's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a much lower PE of 11.65, indicating that Darjeeling Ropew is trading at a premium. Furthermore, the company's EV to EBIT and EV to EBITDA ratios are both negative at -72.68, which raises concerns about its profitability relative to its enterprise value. Given these factors, Darjeeling Ropew is deemed overvalued in the current market context, despite its strong stock performance compared to the Sensex, with a YTD return of 79.72% against the Sensex's 5.58%.